Qurate Retail, through its ownership interests in subsidiaries and other companies, is primarily engaged in the video and on-line commerce industries. Qurate Retail identifies its reportable segments as (A) those consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of Qurate Retail's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation.

Qurate Retail evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per customer equivalent. In addition, Qurate Retail reviews nonfinancial measures such as unique website visitors, conversion rates and active customers, as appropriate.

For segment reporting purposes, Qurate Retail defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding all stock-based compensation and transaction related costs). Qurate Retail believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, certain purchase accounting adjustments, separately reported litigation settlements, transaction related costs (including restructuring, integration, and advisory fees), and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Qurate Retail generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.

During the first quarter of 2019 the Company changed its reportable segments to combine HSN and QVC U.S. into one reportable segment called “QxH,” and presented prior period information to conform with this change. As a result of the QRG Initiatives and additional integration activities to drive synergies between HSN and QVC U.S., the chief operating decision maker began reviewing HSN and QVC U.S. information as one business unit during the first quarter of 2019.

For the year ended December 31, 2019, Qurate Retail has identified the following consolidated subsidiaries as its reportable segments:

Qurate Retail's operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated subsidiaries are the same as those described in the Company's summary of significant accounting policies.

Performance Measures


	Years ended December 31,
	2019			2018		2017
			Adjusted		Adjusted		Adjusted
	Revenue		OIBDA	Revenue	OIBDA	Revenue	OIBDA
	amounts in millions
QxH	$	8,277	1,536	8,544	1,630	6,140	1,455
QVC International		2,709	446	2,738	429	2,631	451
Zulily		1,571	48	1,817	108	1,613	91
Corporate and other		901	(1)	973	(13)	23	(47)
Inter-segment eliminations		—	—	(2)	—	(3)	—
Consolidated Qurate Retail	$	13,458	2,029	14,070	2,154	10,404	1,950

Other Information


	December 31, 2019				December 31, 2018
			Investments			Investments
	Total		in	Capital	Total	in	Capital
	assets		affiliates	expenditures	assets	affiliates	expenditures
	amounts in millions
QxH	$	12,774	40	257	12,817	38	161
QVC International		2,268	—	34	2,154	—	67
Zulily		1,136	—	23	2,199	—	24
Corporate and other		1,127	86	11	671	97	23
Consolidated Qurate Retail	$	17,305	126	325	17,841	135	275

The following table provides a reconciliation of consolidated segment Adjusted OIBDA to operating income and earnings (loss) from continuing operations before income taxes:


	Years ended December 31,
	2019		2018	2017
	amounts in millions
Consolidated segment Adjusted OIBDA	$	2,029	2,154	1,950
Stock-based compensation		(71)	(88)	(123)
Depreciation and amortization		(606)	(637)	(725)
Transaction related costs		(1)	(72)	(59)
Impairment of intangible assets and long lived assets		(1,167)	(33)	—
Operating income		184	1,324	1,043
Interest expense		(374)	(381)	(355)
Share of earnings (loss) of affiliates, net		(160)	(162)	(200)
Realized and unrealized gains (losses) on financial instruments, net		(251)	76	145
Gains (losses) on transactions, net		(1)	1	410
Tax sharing income (expense) with GCI Liberty, Inc.		(26)	32	—
Other, net		6	(7)	7
Earnings (loss) from continuing operations before income taxes	$	(622)	883	1,050

Revenue by Geographic Area

Revenue by geographic area based on the location of customers is as follows:


	Years ended December 31,
	2019		2018	2017
	amounts in millions
United States	$	10,666	11,233	7,684
Japan		1,028	947	934
Germany		890	943	899
Other foreign countries		874	947	887
	$	13,458	14,070	10,404

Long-lived Assets by Geographic Area


	December 31,
	2019		2018
	amounts in millions
United States	$	935	869
Japan		153	165
Germany		154	161
Other foreign countries		109	127
	$	1,351	1,322